Fed Minutes Flag High Rates for 'Some Time'

AUD

The Aussie dollar opens weaker against most major currencies while the ASX ended yesterday's session 0.7% higher, whilst gains across mining and energy stocks offsetting tech and property losses. Gold closed flat, while Silver and Iron Ore were mixed at 0.1% and -0.4% respectively. Yesterday, the RBA Assistant Gov Kent spoke in Sydney which showed no movement to the market. No significant data today for the Aussie, besides the MI Inflation Expectations, which are not expected to have an impact on the dollar. We also have China’s New Loans (tentative) and M2 Money supply y/y today with the New Loans forecasted to tick up to 2500B from the previous 1360B as Beijing seeks to roll out new stimulus in an effort to boost economic activity.

USD

The AUDUSD opens slightly lower at 0.6413, having bottomed out at 0.6388 in the early hours. A relatively subdued session on Wall St saw the Nasdaq close +0.7%, the S&P 500 +0.4%, and the Dow Jones +0.2%. The Core PPI m/m and PPI m/m both came in stronger than expected overnight at 0.3% and 0.5% respectively, with markets showing only a mild reaction to the PPI release. The Fed Meeting Minutes were also released flagging policymakers' beliefs that rates should remain higher for some time. Notably, the minutes showed 'a majority' of officials saw one more rate increase 'would likely be appropriate'. Tonight, we have CPI data from the US with expectations of the first y/y decline in 3 months. The headline figure is expected at 3.6%, while the monthly figure is forecasted at 0.3%. We'll also see Unemployment Claims with the print expected to tick up to 211k.

EUR

The AUDEUR opens lower at 0.6040, having steadily declined during the early hours, while the DAX and CAC both gained 2%. No major data for the Euro yesterday but we did see the German Final CPI m/m come in at expectations of 0.3%. Tonight, we'll see the ECB Monetary Policy Meeting Accounts.

GBP

The AUDGBP opens lower this morning at 0.5210 while the FTSE gave up -0.1% in yesterday's session. No meaningful data from the UK overnight, while major data today will be GDP m/m which was previously at -0.5% and is forecasted to come in at 0.2%. We also have a few smaller pieces of date for the Pound throughout the day being the Construction Output m/m, Goods Trade Balance and Industrial Production m/m.

NZD

The Aussie Kiwi opens up slightly stronger this morning at 1.0654 from yesterday’s open at 0.6370. The Visitor Arrivals m/m came in at -4.1% from 1.8% with no impact on the rate. This morning's FPI m/m came in at -0.4% from 0.5%. The rest of the week is looking quiet for the Kiwi Dollar with no other major data.